Correlation Between Hefei Metalforming and Finework New
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By analyzing existing cross correlation between Hefei Metalforming Mach and Finework New Energy, you can compare the effects of market volatilities on Hefei Metalforming and Finework New and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hefei Metalforming with a short position of Finework New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Finework New.
Diversification Opportunities for Hefei Metalforming and Finework New
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Finework is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Finework New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finework New Energy and Hefei Metalforming is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hefei Metalforming Mach are associated (or correlated) with Finework New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finework New Energy has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Finework New go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Finework New
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.77 times more return on investment than Finework New. However, Hefei Metalforming Mach is 1.3 times less risky than Finework New. It trades about 0.03 of its potential returns per unit of risk. Finework New Energy is currently generating about 0.01 per unit of risk. If you would invest 738.00 in Hefei Metalforming Mach on September 14, 2024 and sell it today you would earn a total of 93.00 from holding Hefei Metalforming Mach or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Finework New Energy
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Finework New Energy |
Hefei Metalforming and Finework New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Finework New
The main advantage of trading using opposite Hefei Metalforming and Finework New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Finework New can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Finework New will offset losses from the drop in Finework New's long position.| Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. China Mobile Limited |
| Finework New vs. Xinjiang Baodi Mining | Finework New vs. Longmaster Information Tech | Finework New vs. Zhejiang Yayi Metal | Finework New vs. Hefei Metalforming Mach |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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